How are the Current Trade Wars Affecting Global Compliance?

Donald Trump’s ‘America First’ platform ignited several trade wars throughout the world. With it, a debate over who had a right to share in a country’s profits began. The platform provoked questions about what kind of people the country actually cared about.

The 2016 election was a vote on who could be called American and who couldn’t. And it sparked a tide of nationalism currently embroiling the world.

Within this wave of nationalistic fervor, trade wars erupted. As Britain attempts to exit the EU and other countries experience waves of nationalism, businesses roiled. And within that brewing economic crisis, it is tough to ensure businesses comply with global standards.

Countries throughout the world are in the midst of a moral and ethical crisis. Political and business leaders are taking advantage of the trade wars to personally profit. As a result, the world as a whole is becoming more corrupt, but that’s not all that’s happening.

Keep reading below to learn how global compliance is being rocked by new trade wars, and what can still be done to keep everyone in check!

Trade Wars Are Still Wars

“War is hugely profitable,” Roger Walters once said. “It creates so much money because it’s so easy to spend money very fast. There are huge fortunes to be made. So there is always an encouragement to promote war and keep it going.”

Just like in traditional warfare, there are victims and survivors in modern trade wars. The victims tend to be companies which continue to go about business as if nothing changed. Meanwhile, survivors adapt to the new political environment.

Unfortunately, they don’t always adapt in an ethical way. Sometimes, companies may think of themselves as too big to fail and will engage in morally bankrupt practices to stay afloat. This can even go so far as facilitating a genocide or simply ignoring compliance standards.

And those social horrors can take a toll on the economy as well, as refugees from it flood different countries. Malaysian Rohingya refugees are impacting the country’s economy, for better or worse – all as a result of the trade wars.

Trade Wars Claim Businesses As Victims

There are still victims in trade wars. Just because many of them happen to be companies doesn’t mean the wars lack real-life consequences. Average people feel the pain that goes into operating businesses in the midst of trade wars with more than their paycheck.

After the trade wars started, people found it harder to purchase basic consumer goods. Automobiles were the first to take a hit, but soon the price of basic necessities began to soar as well. Brand name food and drink increased their prices, strangling the middle class.

In the midst of all this, it’s hard to keep up with what truly motivates price fluctuations. Manufacturing workers in China may have lost their jobs due to a decrease in business. Yet, it’s also possible that business leaders saw an opportunity to line their own pockets.

Since trade wars essentially throw away the rulebook, it’s just harder to ensure business is being done ethically.

The Wars May Be Coming To An End

Luckily, the world economy may soon stop roiling as the political landscape calms. For example, despite an approaching Brexit deal, the country is preparing for a hard Brexit. After March 29, European uncertainty may soothe, and business will have a clearer idea of the political landscape they’re working with.

At the same time, US politics may soon calm down as a well. A democratic house is edging towards impeachment proceedings, which would remove a source of major uncertainty from power. The trade wars may soon be over, meaning business may go back to normal.

In the meantime though, businesses need to be held to global standards. And for that, we’re here. Register here to be a part of the ACES Conference and learn what’s being done to keep peace in the trade wars!